-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: keymaster@town.hall.org Originator-Key-Asymmetric: MFkwCgYEVQgBAQICAgADSwAwSAJBALeWW4xDV4i7+b6+UyPn5RtObb1cJ7VkACDq pKb9/DClgTKIm08lCfoilvi9Wl4SODbR1+1waHhiGmeZO8OdgLUCAwEAAQ== MIC-Info: RSA-MD5,RSA, LCNpJr3GbU8aMgcg+OESzyY+H5Vsu0Kt4F2sRkyOkhT5I2Vw36IGvIIK7sbR0Hrc NH2IIoiWii1j/nuIPkkxOQ== 0000719544-94-000028.txt : 19941222 0000719544-94-000028.hdr.sgml : 19941222 ACCESSION NUMBER: 0000719544-94-000028 CONFORMED SUBMISSION TYPE: 10-Q/A PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19940828 FILED AS OF DATE: 19941221 SROS: NYSE FILER: COMPANY DATA: COMPANY CONFORMED NAME: QUICK & REILLY GROUP INC /DE/ CENTRAL INDEX KEY: 0000719544 STANDARD INDUSTRIAL CLASSIFICATION: SECURITY BROKERS, DEALERS & FLOTATION COMPANIES [6211] IRS NUMBER: 133082841 STATE OF INCORPORATION: DE FISCAL YEAR END: 0228 FILING VALUES: FORM TYPE: 10-Q/A SEC ACT: 1934 Act SEC FILE NUMBER: 001-08517 FILM NUMBER: 94565523 BUSINESS ADDRESS: STREET 1: 230 SOUTH COUNTY RD CITY: PALM BEACH STATE: FL ZIP: 33480 BUSINESS PHONE: 4076558000 MAIL ADDRESS: STREET 1: 26 BROADWAY, 11TH FLOOR CITY: NEW YORK STATE: NY ZIP: 10004 FORMER COMPANY: FORMER CONFORMED NAME: QUICK & REILLY GROUP INC /DE/ DATE OF NAME CHANGE: 19920703 FORMER COMPANY: FORMER CONFORMED NAME: QUICK & REILLY GROUP INC /VA/ DATE OF NAME CHANGE: 19600201 10-Q/A 1 SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q For Quarter Ended August 26, 1994 Commissions File #2-83667 THE QUICK & REILLY GROUP, INC. State of Incorporation - Delaware IRS Employer ID# - 13-3082841 230 South County Road Palm Beach, FL 33480 Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities & Exchange Act of 1934 during the preceding 12 months, and (2) has been subject to such filing requirements for the past 90 days. Yes X No THE QUICK & REILLY GROUP, INC. AND SUBSIDIARIES FORM 10-Q FOR THE QUARTER ENDED August 26, 1994 INDEX Page Number Part I. Item 1. Financial Statements Consolidated Statements of Financial Condition - August 26, 1994 (Unaudited) and February 28, 1994 1 Consolidated Statements of Income (Unaudited) - Three Months Ended August 26, 1994 and August 27, 1993 2 Consolidated Statements of Income (Unaudited) - Six Months Ended August 26, 1994 and August 27, 1993 3 Consolidated Statements of Cash Flows (Unaudited) - Six Months Ended August 26, 1994 and and August 27, 1993 4 Notes to Consolidated Financial Statements ( Unaudited) 6 Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 7 SIGNATURE PAGE The Quick & Reilly Group, Inc. and Subsidiaries Consolidated Statements of Financial Condition August 26, February 28,
(In thousands except share amounts) 1994 1994 ---------------------------------- (Unaudited) ASSETS Cash & Cash Equivalents $91,195 $41,824 Receivable from Brokers, Dealers and Clearing Organizations 1,758,122 1,610,695 Receivable From Customers 693,946 731,353 Securities Owned at Market Value - U.S. Government 6,556 8,991 Municipal 60,019 43,796 Equities and Other 13,528 11,998 Exchange Memberships- At Cost (Market Value $9,942 and $9,000) 3,908 3,908 Furniture, Equipment and Leasehold Improvements- At Cost Less Accumulated Depreciation and Amortization of $8,665 and $7,837 5,582 5,923 Other Assets 18,432 18,367 ---------------------------------- TOTAL ASSETS $2,651,288 $2,476,855 ================================== LIABILITIES AND SHAREHOLDERS' EQUITY Liabilities: Money Borrowed From Banks $1,000 $38,003 Drafts Payable 22,417 46,552 Payable to Brokers, Dealers and Clearing Organizations 1,939,317 1,758,738 Payable to Customers 417,070 376,569 Securities Sold, But Not Yet Purchased- At Market Value 7,028 8,059 Income Taxes Payable 2,118 1,702 Accrued Expenses and Other Liabilities 42,695 42,274 ---------------------------------- Total Liabilities 2,431,645 2,271,897 ---------------------------------- Commitments and Contingencies Shareholders' Equity Preferred Stock, $.01 par value; authorized 1,000,000 shares, none issued and outstanding Common Stock, $.10 par value; authorized 20,000,000 shares, issued 11,237,475 shares 1,124 1,124 Paid-In Capital 74,179 74,179 Retained Earnings 147,756 131,585 ---------------------------------- 223,059 206,888 Less: Common Stock in Treasury, at Cost - 126,400 shares in August 1994, and 69,400 in February 1994 (3,416) (1,930) ---------------------------------- TOTAL SHAREHOLDERS' EQUITY 219,643 204,958 ---------------------------------- TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $2,651,288 $2,476,855 ================================== The accompanying notes are an integral part of these statements.
The Quick & Reilly Group, Inc. and Subsidiaries Consolidated Statements of Income (Unaudited)
(In thousands, except per share amounts) Three Months Ended ------------------------------------ August 26, August 27, 1994 1993 ------------------------------------ REVENUES Commisssions and Clearance Income $30,988 $36,672 Interest 30,582 15,117 Specialist Trading and Commissions 9,488 7,985 Other 2,005 1,555 ------------------------------------ Total Revenues 73,063 61,329 ------------------------------------ EXPENSES Employee Compensation and Benefits 20,114 18,843 Interest 19,784 8,153 Brokerage, Exchange and Clearance Fees 3,259 3,076 Data Processing and Equipment Rental 3,829 3,920 Communication 678 722 Printing, Postage, Stationery and Office Supplies 1,409 1,724 Advertising 1,386 1,617 Rent and Other Occupancy 1,597 1,422 Professional Services 469 644 Amortization of Intangibles 545 652 Other 2,914 2,720 ------------------------------------ Total Expenses 55,984 43,493 ------------------------------------ Income Before Provision for Income Taxes 17,079 17,836 Provision for Income Taxes 8,560 7,889 ------------------------------------ NET INCOME $8,519 $9,947 ==================================== Earnings Per Share $0.766 $0.888 Weighted Average Number Of Shares Outstanding During the Period 11,115 11,203 Cash Dividends Declared Per Share $0.12 $0.10 The accompanying notes are an integral part of these statements.
The Quick & Reilly Group, Inc. and Subsidiaries Consolidated Statements of Income (Unaudited)
(In thousands, except per share amounts) Six Months Ended ------------------------------------ August 26, August 27, 1994 1993 ------------------------------------ REVENUES Commisssions and Clearance Income $68,994 $73,802 Interest 55,976 28,913 Specialist Trading and Commissions 20,304 16,368 Other 3,227 2,382 ------------------------------------ Total Revenues 148,501 121,465 ------------------------------------ EXPENSES Employee Compensation and Benefits 42,072 36,209 Interest 35,815 15,674 Brokerage, Exchange and Clearance Fees 6,680 6,488 Data Processing and Equipment Rental 8,415 7,974 Communication 1,503 1,466 Printing, Postage, Stationery and Office Supplies 2,966 3,532 Advertising 2,834 3,130 Rent and Other Occupancy 3,155 2,795 Professional Services 1,105 1,217 Amortization of Intangibles 1,067 1,253 Other 5,881 5,347 ------------------------------------ Total Expenses 111,493 85,085 ------------------------------------ Income Before Provision for Income Taxes 37,008 36,380 Provision for Income Taxes 18,169 16,208 ------------------------------------ NET INCOME $18,839 $20,172 ==================================== Earnings Per Share $1.694 $1.803 Weighted Average Number Of Shares Outstanding During the Period 11,124 11,189 Cash Dividends Declared Per Share $0.24 $0.20 The accompanying notes are an integral part of these statements.
The Quick & Reilly Group, Inc. and Subsidiaries Consolidated Statements of Cash Flows (Unaudited)
(In Thousands) Six Months Ended ---------------------------------- August 26, August 27, 1994 1993 ---------------------------------- CASH FLOWS FROM OPERATING ACTIVITIES: Net Income $18,839 $20,172 Adjustments to Reconcile Net Income to Net Cash Provided By (Used In) Operating Activities: Depreciation and Amortization 2,065 2,137 Decreases (Increases) in Operating Assets: Receivable from Brokers, Dealers, and Clearing Organizations (147,427) (411,095) Receivable from Customers 37,407 (66,141) Securities Owned (15,317) (27,244) Other Assets (1,133) (6,880) Increases (Decreases) in Operating Liabilities: Money Borrowed From Banks (37,003) (23,582) Drafts Payable (24,135) (22,199) Payable to Brokers, Dealers, and Clearing Organizations 180,579 519,393 Payable to Customers 40,501 25,482 Securities Sold, But Not Yet Purchased (1,031) 107 Income Taxes Payable 416 (4,091) Accrued Expenses and Other Liabilities 421 (581) ---------------------------------- NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES 54,182 5,478 ---------------------------------- CASH FLOWS FROM FINANCING ACTIVITIES: Dividends Paid on Common Stock (2,668) (2,082) Cash Paid in Lieu of Shares Issued on Account of 5% Stock Dividend - (4) Sale of Treasury Stock Under Stock Option Plan and Related Tax Benefits - 712 Purchase of Treasury Stock (1,486) - ---------------------------------- NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES (4,154) (1,374) ---------------------------------- CASH FLOWS FROM INVESTING ACTIVITIES: Payments for Purchase of Funiture, Equipment and Leasehold Improvements (657) (773) ---------------------------------- NET CASH USED IN INVESTING ACTIVITIES (657) (773) ---------------------------------- NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 49,371 3,331 CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE YEAR 41,824 46,231 ---------------------------------- CASH AND CASH EQUIVALENTS AT THE END OF THE QUARTER $91,195 $49,562 ================================== SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: Cash Paid During the Quarter For: Interest $34,546 $16,530 Income Taxes 14,254 21,187 Noncash Financing and Investing Activities: Five 5% Stock Dividend Paid - 13,236 Issuance of Common Stock Pursuant to Stokes, Hoyt & Co. Acquisiton - 2 The accompanying notes are an integral part of these statements.
The Quick & Reilly Group, Inc. and Subsidiaries Notes to Consolidated Financial Statements (Unaudited) 1. Basis of Presentation The accompanying interim financial statements reflect all adjustments which are, of a normal recurring nature, and, in the opinion of management, necessary for a fair presentation of the interim periods presented. It is recommended that these financial statements be read in conjunction with the Company's Financial Statements and Notes thereto included in the 1994 Annual Report which is incorporated by reference on Form 10-K. 2. Commitments and Contingencies Margin requirements of $58,581,000 with a clearing corporation at August 26, 1994 have been satisfied by obtaining letters of credit of $62,000,000 secured by customers' margin account securities. In the ordinary course of their securities business, certain of the Company's subsidiaries have been named defendants in a number of lawsuits. In the opinion of management, based upon discussion with counsel, the resolutions of such lawsuits will not in the aggregate have a material adverse effect on the consolidated financial condition of the Company or on its results of operations. 3. Earnings Per Share Earnings per share have been calculated by dividing net income by the weighted average number of shares outstanding for the fiscal quarter. For the quarter ended August 27, 1993, the weighted average number of shares outstanding have been adjusted to give effect for the two five percent dividends declared during the fiscal year ended February 28, 1994. 4. Income Taxes For the three months ended August 26, 1994 and August 27, 1993, respectively, the effective income tax rate differs from the expected federal statutory rate applied to income before income taxes primarily due to state and local taxes. 5. Net Capital Requirements As registered broker-dealers and member firms of the New York Stock Exchange, Inc. (the "NYSE"), three subsidiaries are subject to certain rules of both the Securities and Exchange Commission and the NYSE. These rules require registrants to maintain minimum levels of net capital, as defined, and may restrict a member from expanding its business and declaring dividends as its net capital approaches specified levels. At August 26, 1994, the subsidiaries had net capital, in the aggregate, of $167,800,000 which exceeded aggregate minimum net capital requirements by $139,000,000. 6. Dividends Declared On June 28, 1994, the Board of Directors declared a cash dividend of $0.12 per share payable on October 3, 1994 to holders of record on September 1, 1994. Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations. Total Assets of the Quick & Reilly Group, Inc. increased $174,433,000 or 7% for August 26, 1994 versus February 28, 1994. Receivable From Brokers, Dealers and Clearing Organizations increased $147,427,000 or 9% primarily due to increases in stock borrowed activity. Receivable From Customers decreased $37,407,000 or 5% due to decreased customer purchases. Investments in Municipal securities owned increased $16,223,000 or 37% in order to take advantage of higher, short-term interest rates. Total Liabilities of the Quick & Reilly Group, Inc. increased $159,748,000 or 7% for August 26, 1994 versus February 28, 1994. Money Borrowed From Banks decreased $37,003,000 or 97% due to the increase in stock loan activities, as did Drafts Payable, decreasing $24,135,000 or 52%. Payable to Brokers, Dealers and Clearing Organizations increased $180,579,000 or 10% primarily due to the increase in stock loan activities. Payable to Customers increased $40,501,000 or 11% due to increased customer sales. Income Taxes Payable increased $416,000 or 24% due to lower estimated tax payments for the current year. Total Revenues increased $11,734,000 or 19% for the quarter ended August 26, 1994 versus the quarter ended August 27, 1993. Total Revenues increased $27,036,000 or 22% for the six month period ended August 26, 1994 versus the six month period ended August 27, 1993. Commission and Clearance Income decreased $5,684,000 or 15% for the quarterly comparison and $4,808,000 for the six month comparison due to decreased volume in the securities markets. Interest Income increased $15,465,000 or 102% for the quarterly comparison and $27,063,000 or 94% for the six month comparison due to increased margin debits and stock borrowed activities. Interest Expense increased $11,631,000 or 143% for the quarterly comparison and $20,141,000 or 129% for the six month comparison primarily due to increased stock loan activities and higher interest rates. Specialist Trading and Commissions increased $1,503,000 or 19% for the quarterly comparison and $3,936,000 or 24% for the six month comparison due to an increase in the number of assigned issues and more favorable market conditions. Other Revenues increased $450,000 or 29% for the quarterly comparison and $845,000 or 35% for the six month comparison primarily due to increased fee income. Total Expenses for the quarter ended August 26, 1994 increased $12,491,000 or 29% versus the quarter ended August 27, 1993 and increased $26,408,000 or 31% for the six month period ended August 26, 1994 versus the six month period ended August 26, 1993. Employee Compensation and Benefits increased $1,271,000 or 7% for the quarterly comparison and $5,863,000 or 16% for the six month comparison primarily due to an increase in the number of employees. Data Processing and Equipment Rental decreased 2% for the quarterly comparison due to the decrease in volume while increasing $441,000 or 6% for the six month comparison primarily due to the increased costs of maintaining and expanding the capabilities of the computer systems of the various subsidiaries. Printing, Postage, Stationery and Office Supplies decreased $315,000 or 18% for the quarterly comparison and $566,000 or 16% for the six month comparison primarily due to the decrease in volume. Rent and Other Occupancy increased $175,000 or 12% for the quarterly comparison and $360,000 for the six month comparison primarily due to the expansion of the branch network in Quick & Reilly, Inc. Other Expenses increased $193,000 or 7% for the quarterly comparison and $534,000 or 10% for the six month comparison primarily due to the expansion of the Quick & Reilly branch network and normal increases in operating costs. Liquidity and Capital Resources Management of the Company believes that funds generated from operations will provide it with sufficient resources to meet all present and reasonably foreseeable future capital needs. The Company's assets are highly liquid and consist mainly of cash or assets readily convertible into cash. SIGNATURES --------- Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has caused this report to be signed on its behalf by the undersigned hereunto duly authorized. THE QUICK & REILLY GROUP, INC. BY: ------------------- Leslie C. Quick, Jr. Chairman of the Board Chief Executive Officer BY: ------------------- Peter Quick President BY: ------------------- Robert J. Rabinoff Controller EX-27 2
BD 1000 QTR-2 FEB-28-1995 AUG-26-1994 91,195 766,269 0 1,685,839 80,103 5,582 2,651,288 23,417 460,373 0 1,896,014 7,028 0 1,124 0 0 221,935 2,651,288 7,265 30,582 33,817 0 623 19,784 20,114 17,079 17,079 0 0 8,519 .766 .766
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